- Current nickel production stands 1,000 t/year
- Indonesia offers significant nickel resources
Critical minerals producer Lohum is seeking to acquire nickel mines in Indonesia and the Philippines as part of its plans to expand nickel production capacity tenfold over the next 18 months, the company said in a statement. The company aims to increase its nickel production capacity to around 10,000 t/year in the set time frame, compared with its current capacity of approximately 1,000 t/year, founder and CEO Rajat Verma said. Lohum currently produces nickel from recycled materials and is looking to secure additional primary raw-material sources to support its growing critical-minerals portfolio.
The company currently produces nickel from recycled materials at its facility in Gujarat. Depending on the outcome of potential mine acquisitions, Lohum could establish capacity beyond its stated 10,000 t/year target. The planned acquisitions in Indonesia and the Philippines would provide the company with access to primary nickel resources and complement its existing recycling operations.
Company seeks $105 million equity funding
Lohum plans to raise around INR 10 billion ($105 million) through equity and up to INR 20 billion ($209 million) through debt over the next 12–18 months to fund its broader expansion plans. The company is currently in discussions with potential investors, although it has not disclosed the names of prospective investors. Access to suitable mining assets could determine the scale and pace of Lohum’s planned nickel capacity expansion.
The planned mine acquisitions come as India seeks to strengthen domestic access to critical minerals required for electric vehicles, renewable energy and battery manufacturing. Developing overseas mineral assets could help Indian companies secure long-term raw-material supplies while reducing exposure to concentrated global supply chains. Indonesia and the Philippines are significant sources of nickel ore, making both markets strategically relevant for Lohum’s planned expansion.
Recycling remains part of Lohum’s nickel strategy
Lohum’s current nickel production is based on recycled materials, providing the company with an alternative source of nickel units alongside potential primary mining assets. The combination of mining and recycling could allow the company to build a more diversified nickel supply chain for its downstream operations.
The company is also establishing a 5,000 t/year cathode active material plant in Uttar Pradesh, which is expected to be commissioned by March and will require nickel and lithium as feedstocks. Lohum is simultaneously expanding its presence across other critical minerals.
The company plans to invest around $100 million in Zimbabwe and has secured rights to 10 lithium mining blocks with estimated resources of 30–40 million tonnes of ore. It plans to process Zimbabwean lithium ore into lithium sulphate before shipping it to India for conversion into lithium carbonate.
Lohum is also developing a lithium-ion battery recycling facility in Sharjah, UAE, which is expected to become operational early next year. In addition, the company is exploring rare-earth opportunities in Southeast Asia and is setting up a 1,200 t/year rare-earth magnet plant in Uttar Pradesh.
Outlook
Lohum’s proposed nickel mine acquisitions could strengthen its access to primary nickel while complementing its existing recycling operations. The strategy also reflects the broader push by Indian companies to establish diversified overseas sources of critical minerals. The impact on India’s nickel supply chain will depend on the quality and scale of acquired mining assets, project timelines, financing and downstream processing capacity.
For the nickel market, Lohum’s expansion could gradually increase the availability of nickel units for its downstream battery-material operations, while the company’s existing recycling business provides an additional source of supply.
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